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Politics

F.E.C. Drops Case Reviewing Trump Hush-Cash Funds to Girls

The Federal Election Commission said Thursday that it passed a case investigating whether former President Donald J. Trump had violated the electoral law with a payment of $ 130,000 just before the 2016 election to become a porn actress had officially dropped his attorney at the time. Michael D. Cohen.

The payment was never reported in Mr Trump’s campaign submissions. Mr Cohen would go on to say that Mr Trump directed him to arrange payments to two women during the 2016 race and apologized for his involvement in a hush money scandal. Mr. Cohen was sentenced to prison for violating campaign finance laws, tax evasion and lying by Congress.

“It was my own weakness and a blind loyalty to this man that led me to choose a path of darkness over light,” said Mr. Cohen in 2018 in court about Mr. Trump.

While Mr. Cohen was in jail, Mr. Trump had no legal ramifications for the payment.

“The hush money was paid on instructions and in favor of Donald J. Trump,” Cohen said in a statement to the New York Times. “Like me, Trump should have been found guilty. How the FEC committee could decide otherwise is confusing. “

In December 2020, the FEC published an internal report from its Office of General Counsel on how to proceed with its review. The office said it had “reason to believe” that campaign finance violations were “knowingly and willfully” committed by the Trump campaign.

However, the electoral commission, which was split evenly between three Republicans and three Democrat-minded commissioners, declined to attend a closed session in February. Two Republican commissioners voted to reject the case, while two Democratic commissioners voted to move forward. There was an absence and a republican rejection.

This decision was announced on Thursday.

Two of the FEC’s Democratic commissioners, Shana Broussard, the current chair, and Ellen Weintraub, declined not to pursue the case after agency staff recommended further investigation.

“To conclude that a payment made 13 days prior to election day to cover up a suddenly newsworthy 10-year story was not campaign related without even conducting an investigation is contrary to reality,” they wrote in a letter.

Republican Commissioners Trey Trainor and Sean Cooksey, who voted not to investigate, said the prosecution of the case was “not the best use of the agency’s resources”, that “the public record is already complete” and that Mr Cohen Have already done so was punished.

“We voted to reject these matters as an exercise of our prosecutor’s discretion,” wrote Cooksey and Trainor.

A spokesman for Mr Trump did not immediately respond to a request for comment.

The Cohen case caught public attention in 2018 after the FBI searched his office, apartment and hotel room and picked up boxes of documents, cell phones and computers. Months later, Mr. Cohen pleaded guilty to campaign funding violations, among other things.

He said in court that he arranged payments – including $ 130,000 to film actress Stormy Daniels, whose real name is Stephanie Clifford – “primarily for the purpose of influencing the election.”

The payment was well above the legal limit for individual presidential contributions, which was then $ 2,700.

Mr. Cohen went on to say he arranged a payment of $ 150,000 through American Media Inc. to Karen McDougal, a former Playboy playmate, in early 2016.

Mr Cohen later turned on Mr Trump and wrote his own book about how he acted as a businessman as the ex-president’s enforcer. The book was called “Disloyal: A Memoir”.

Categories
Politics

SEC reviewing GameStop frenzy, vows to guard retail buyers

The US Securities and Exchange Commission in Washington, DC

Adam Jeffery | CNBC

The Securities and Exchange Commission announced on Friday that it will help protect investors by reviewing recent trading volatility that has caused stocks like GameStop and AMC Entertainment to soar.

In a statement, the country’s top financial regulator pledged to protect individual traders and to examine measures taken by brokers that “could disadvantage investors or otherwise unduly hinder their ability to trade certain securities”.

“We will act to protect retail investors when the facts show abusive or manipulative trading activity that is prohibited by federal securities laws,” the SEC said.

“The Commission is working closely with our regulatory partners, both in government and at FINRA and other self-regulatory organizations, including exchanges, to ensure that regulated companies meet their obligations to protect investors and identify and prosecute potential misconduct.”

The explanation came as sharply shortened, soaring stocks rose again during Friday’s session. Video game retailer GameStop, theater operator AMC and headphone maker Koss were up 50%, 53% and 43%, respectively.

The SEC’s promise to curb brokerage deals that may have “unduly” restricted customers’ tradability is good news for members of WallStreetBets Reddit and other retailers who sparked the rally.

By buying the sharply shortened stocks or their call options, retail investors have forced investors betting against the stocks known as short sellers to cover their positions by repurchasing stocks to avoid further losses.

If this happens on a massive scale, it is called a “short squeeze” and can lead to a dramatic, volatile rise in the share price.

Many individual traders took to Twitter and other social media platforms on Thursday to protest Robinhood’s decision to restrict access to certain stocks at the center of the controversy. The high trading volume puts pressure on online brokers like Robinhood, who customers have to pay in cash when closing a position. The brokers also needed additional cash to provide their clearing facility with additional capital and to protect trading partners from excessive losses.

Robinhood later said it would allow limited purchases in GameStop and other volatile stocks on Friday.

For the week, GameStop is up 420%, Koss is up 1,800%, and AMC is up 280%.

A pedestrian walks past a GameStop Corp. store in Rome, Italy on Thursday, January 28, 2021.

Alessia Pierdomenico | Bloomberg | Getty Images

The sharp swings in such stocks, as well as Robinhood’s decision to restrict trading, have drawn the ire of politicians on both sides of the political aisle.

Senator Elizabeth Warren told CNBC Thursday that she blamed the SEC’s failure to act for the days of flash of market speculation.

“We need an SEC that has clear rules for market manipulation and then has the backbone to enforce and enforce those rules,” said the Massachusetts Democrat. “To have a healthy stock market, you have to have a cop on the beat.”

“That should be the SEC,” she added. “You have to step up and do your job.”

North Carolina MP Patrick McHenry, the senior Republican on the House Financial Services Committee, said Friday he was concerned about unequal access to capital markets.

I want to “make sure we don’t stop people from having additional access to markets and therefore leave them to activities like we’ve seen with GameStop and some other tradable stocks,” he said on Squawk Box.

“What I’m seeing here is this bigger case: average, everyday investors are excluded from the access that insiders like C-suite members get from corporations, and hedge funds and private equity get natural access,” he added. “And that the credit investor standard has turned our markets into an extremely prosperous lie.”